Money-spinner Adani stocks add Rs 8.5 lakh crore to investor wealth in 2022. Can their magic continue?

NEW DELHI: Often touted as proxies to India's growth story, Adani stocks have had a stellar run in 2022, outpacing benchmark Nifty by a wide margin.

Five of the 10 Adani group stocks gave multibagger returns to investors, rising up to 200% this year while overall the market capitalisation of all companies together saw an addition of Rs 8,54,915 crore, shows ACE Equity data.

Adani Power led the pack, with a 204% surge in shares from Rs 99.75 at the end of December 31, 2021, to Rs 303.55 now, as it benefited from a jump in demand for electricity. Recently included in the flagship Nifty50 pack, Adani Enterprises has surged 122%. FMCG major Adani Wilmar, which debuted on bourses earlier in the year, made investors richer by Rs 75,167 crore with its 118% jump.


The group's flagship companies already operate in sectors such as aviation, port, infrastructure and FMCG. This year, Gautam Adani forayed into newer segments, namely cement and media, with the acquisition of ACC, Ambuja Cements and NDTV.

Acquisition buzz has made NDTV the second-best-performing stock in the Adani pack. The media company in which Adani group now holds 64.71% has rallied a whopping 187% in 2022, adding Rs 1,391 crore to investors' kitty.

Cement companies ACC and Ambuja Cements have added 11% and 37% so far in the calendar year. Meanwhile, Adani Transmission, Adani Green Energy, Adani Transmission and Adani Ports have risen between 11-48%.

Can Adani stocks continue to spin their magic?
Analysts have raised concerns about the high debt levels and stretched valuations of some of the Adani group companies, and most of them have limited-to-no coverage. That said, the market consensus remains that these companies can continue to benefit as they operate in sectors closely linked to India's economy.

"If the Indian economy has to double from the current levels, then infrastructure will play a vital role, wherein Adani group companies have a strong presence. The sectors that these group companies operate in are expected to remain vibrant in the coming days and an upside is likely in these companies," Kranthi Bathini of WealthMills Securities told ETMarkets.com.

As far as the stocks are concerned, even though the valuations look stretched, these companies have a macro advantage, Bathini added.

Neeraj Dewan, Director, Quantum Securities believes that going ahead, in 2023, select Adani Group companies will perform.

"Ambuja Cements has good value. Consolidation is happening plus they are putting in more capex there. That is one stock I am positive on as far as Adani Group companies are concerned. The other one would be Adani Wilmar, which saw good corrections. For the next one-and-a-half years, it can give decent returns. The third one can be Adani Ports which has also good value. One can still get returns from Adani group companies but one should know which company and at what value you are investing in," told Dewan ET NOW in an interview.

Meanwhile, Bathini is betting on Adani Enterprises and Adani Wilmar.

"Adani Enterprises has a solid asset base and good cash flows despite there being debt on the balance sheet. Adani Wilmar has delivered stellar returns. Even as the space is getting overcrowded, there is room for upside," said Bathini.

(Data Inputs: Ritesh Presswala)

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)